International City recorded a 76 per cent year-on-year rise in rents during Q4 2013 while rents in Jumeirah Lake Towers surged 50 per cent. Rental rates in Discovery Gardens also grew by 44 per cent on average during the period, according to the report.

Among villas, Mirdif recorded the highest growth rate with rents rising by 40 per cent while Arabian Ranches saw a 30 per cent growth in leasing rates.

Dubai’s residential sales prices were also up by 60 per cent in 2013, it added.

“Sales prices for apartments and villas rose by 23 per cent in Q4 2013 alone, fuelled by increased confidence and the fact that the new law regulating maximum loan-to-value ratios was not being consistently enforced, although cash buyers still dominated,” said John Stevens, managing director, Asteco Property Management.

“Owner occupiers and investors were keen to enter the market as rental rates were on an upward trend, which indicated better returns and potential for capital appreciation in the medium term.”

Sale prices of Palm Jumeirah villas grew the highest with prices rising by 67 per cent year-on-year in Q4 2013, followed by Jumeirah Village Circle, which recorded a price rise of 55 per cent in Q4 2013.

Discovery Gardens recorded the highest rise in apartment sale prices in the emirate with prices increasing by 83 per cent while Dubai Marina prices grew by 81 per cent.